Quick answer: On a New York project paid for with federal money, you can owe two prevailing wage laws at once: the federal Davis-Bacon Act and New York’s Labor Law Article 8. When both apply, you generally pay the higher rate for each classification, follow the stricter rule, and file two separate certified payrolls — a federal WH-347 and a New York filing through NYSDOL.
Why one jobsite can trigger two prevailing wage laws
New York contractors are used to state prevailing wage on public work. What catches firms off guard is that many local projects are now partly funded by federal dollars — infrastructure grants, water and sewer revolving funds, HUD money, and Bipartisan Infrastructure Law programs. The moment federal construction funding is involved, the federal Davis-Bacon Act can attach on top of New York’s own prevailing wage law. You do not get to pick one; both sets of obligations run in parallel, and an auditor from either government can review your payrolls.
Davis-Bacon (federal) in brief
The Davis-Bacon Act applies to contracts over $2,000 for the construction, alteration, or repair of public buildings or public works that are funded or assisted by the federal government. On covered work you must pay laborers and mechanics at least the locally prevailing wage and fringe benefits set in the U.S. Department of Labor wage determination written into the contract.
- Certified payroll: Under the Copeland Act you must submit a weekly certified payroll for every week work is performed. Form WH-347 is the standard format (its use is optional, but the weekly submission and a signed Statement of Compliance are not).
- Where it goes: The federal certified payroll is submitted to the contracting agency or the prime contractor, not to a New York state portal.
- Classifications: Workers are paid according to the classifications in the federal wage determination, which do not always line up with New York’s classifications.
New York prevailing wage (Article 8) in brief
New York’s prevailing wage law lives in Labor Law Article 8 (Section 220) for construction-type public work. The prevailing wage and supplement (fringe) schedules are set by the New York State Department of Labor, or by New York City’s Comptroller for city work. Two features surprise contractors coming from the federal side:
- No dollar threshold. Unlike Davis-Bacon’s $2,000 floor, Article 8 has no minimum contract size — if it is covered public work, prevailing wage applies.
- Electronic filing. Certified payrolls are filed with NYSDOL through its electronic system, and late or missing transcripts carry their own penalties and interest exposure under Article 8.
Running federal and New York work off one set of assumptions will cost you
The fringe annualization rules differ. Davis-Bacon divides by hours actually worked. New York applies a stricter test with no immediate-vesting exception. A contribution rate that satisfies one can leave you short on the other, on every hour, for the length of the contract.
We build the payroll accounting to handle both at once. Call 631-349-1661 or send us the details and we will give you a straight answer.
Which rate applies when both cover the job?
When Davis-Bacon and Article 8 both apply to the same project, they do not cancel out and you do not average them. The governing principle is protective: the worker gets the benefit of whichever law is more generous. In practice that means, for each classification and each hour worked, you compare the total federal prevailing wage (base plus fringe) against the New York total and pay the higher of the two. You also have to satisfy the stricter procedural rule of each law — for example, meeting Davis-Bacon’s rules on how base pay and fringe are counted while still meeting New York’s supplement requirements.
A worked example
Say a municipal water-treatment upgrade in an upstate county is paid partly with a federal infrastructure grant, so both laws apply. For a laborer classification:
- Federal (Davis-Bacon) determination: $42.00 base + $18.00 fringe = $60.00 total.
- New York (Article 8) schedule: $45.00 base + $22.00 supplement = $67.00 total.
You must pay at least $67.00 per hour of wages and benefits for that classification — the higher New York total — while still honoring Davis-Bacon’s requirements on how that pay is structured and documented. Then you report the same hours on both a federal WH-347 and a New York certified payroll.
Two certified payrolls, two destinations
The single biggest operational mistake on dual-covered jobs is filing only one payroll. The federal WH-347 goes to the contracting agency or prime under the Davis-Bacon and Copeland Act rules; the New York certified payroll goes to NYSDOL through its electronic filing system. Both are weekly, both need a signed compliance statement, and both must reflect the wage you actually paid — which should be the higher combined rate. The pay data is the same underneath; the forms, classifications, and filing channels are not.
Common mistakes on federally funded New York jobs
- Assuming state filing covers the federal requirement (or vice versa) and skipping one payroll entirely.
- Paying the lower of the two rates, or averaging them, instead of paying the higher.
- Mapping a worker to a federal classification and a mismatched New York classification, so the two payrolls disagree.
- Overlooking that a locally administered project is federally funded, and discovering Davis-Bacon coverage only at audit.
- Treating fringe or supplement dollars inconsistently between the two filings.
Frequently asked questions
What is the difference between Davis-Bacon and New York prevailing wage?
Davis-Bacon is the federal prevailing wage law that applies to federally funded or assisted construction contracts over $2,000, using U.S. Department of Labor wage determinations. New York prevailing wage comes from Labor Law Article 8, applies to covered public work with no dollar minimum, and uses NYSDOL schedules. A single project can be subject to both.
If both apply, which prevailing wage do I pay?
You pay the higher of the two for each classification — comparing total base wage plus fringe or supplement — and you comply with the stricter procedural requirement of each law. The laws are protective, so the worker receives the more favorable rate.
Do I have to file two certified payrolls?
Yes. On a dual-covered job you file a federal weekly certified payroll (commonly on Form WH-347) with the contracting agency or prime, and a separate New York certified payroll with NYSDOL through its electronic system. Both are weekly and both need a signed statement of compliance.
How do I know if my project is federally funded?
Check the contract for a Davis-Bacon wage determination and federal labor clauses, and ask the awarding agency about the funding source. Grants, revolving loan funds, and infrastructure-law dollars flowing through a local agency commonly carry Davis-Bacon coverage even when the project is administered locally.
Can my payroll company handle both filings?
The filings can be prepared regardless of which payroll provider you use; they are a reporting and compliance function, not a product of one specific software. We work with contractors on any payroll platform to produce both federal and New York certified payrolls correctly and on time.
Get dual prevailing wage compliance right
Precision Accounting & Consulting helps New York contractors stay compliant on federally funded public work — reconciling federal and state classifications, confirming the correct rate, and filing both certified payrolls each week. See our certified payroll and DOL filing services and our broader construction accounting services, and reach out before your next federal-aid bid. We work with any payroll provider.
This article is for general informational purposes only and does not constitute legal, accounting, or tax advice. Prevailing wage determinations and filing requirements change; confirm current rules with NYSDOL and the U.S. Department of Labor for your specific project.
Pursuing federal cost-reimbursable work? See DCAA compliance: what your accounting system actually needs.
One thing both regimes share. Federal and New York rules diverge on annualization and fringe treatment, but both start from the same step: classifying the worker into the correct trade and title. An error there makes every other calculation wrong regardless of which regime applies.
New Jersey adds a third layer for tri-state contractors. Its prevailing wage law applies at much lower contract thresholds than most people expect, and its fringe annualization divides by a flat 2,000 hours rather than actual hours worked. See New Jersey certified payroll requirements for how it compares.
There is a third layer beneath the federal and State schedules: the New York City Comptroller schedule, which governs City-let projects and is issued separately from NYSDOL.
For the federal reporting mechanics, including the redesigned January 2025 form, see Form WH-347.
The two regimes diverge sharply on how an hourly fringe obligation is computed, which is why a contractor compliant federally can still be short in New York. The state figure and its annualization are explained in the supplemental benefit rate per hour.
Talk to an accountant who works in your industry
Precision Accounting & Consulting works with contractors, law firms, medical practices and property owners across the country. If something on this page raised a question about your own books, send it over and we will give you a straight answer.